Market Commentary

Daily reports from our Chief Economic Strategist.

IS NORMALCY RETURNING FASTER THAN ANYONE WOULD THINK?
Yesterday the title of these remarks was “Will 2021 be the Return to Normalcy?” According to Bloomberg yesterday for the first time in several years the 10-year
WILL 2021 BE THE RETURN OF NORMALCY?
Welcome to 2021! 2020 was the year of Black Swan Events. Will 2021 be the inverse? Will normalcy return, defined as established benchmarks again become relevant?
A MIXED DAY
Equities were mixed as optimism over a COVID relief bill was tempered by the emergence of a new variant of the virus and a slew of lockdown and travel curbs to contain it. Technology led at
A MIXED DAY
Some have opined Tesla could be the greatest example of “buy on rumor and sell on fact.” As widely known, TSLA has surged almost 75% since mid-November when it was announced that it
WILL OR CAN HISTORY MIMIC ITSELF?
Approximately nine months ago the Fed flooded the financial system with $5 trillion, an amount that could be levered to $50 trillion to provide liquidity to the frozen bond market. Contrary to the
THE SIGNIFICANCE OF THE EARNINGS YIELD AND INTEREST RATES
Many times, I have commented about the outsized influence interest rates have upon equity valuations, stating if rates move higher, equity volatility may increase. Last week I
NO MAJOR CHANGE OF FED POLICY
Can a case be made this holiday season marks the birth of another era? According to government officials, the vaccination rate will sharply accelerate. Two weeks ago, government was
THE OUTCOME OF THE FED MEETING ANNOUNCED AT 2:00 P.M.
Today is the conclusion of a two-day FOMC meeting. No change in interest rates is expected but some are speculating about a change in
YESTERDAY WAS AN UNIQUE DAY
Yesterday was a unique day, defined as the early day expectations did not occur. Mega sized tech rallied even as the EU is threatening to fine up to 10% of annual revenue if they don’t
IS TODAY ANALOGOUS TO TWENTY YEARS AGO?
As I mentioned, the capitalization of recent IPOs far exceeds the total capitalization of the leaders in their respected industries, an environment which at best suggests many years of

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